LDK - HOLY SHITby Danny on August 25th, 2008 at 11:11:55 pm |
LDK Solar Co., Ltd. [[LDK]] broke out above this support line I mentioned the other day. I missed this one today, but the move looks fo’ reals. The announced better than expected revenue guidance for 2009 (by 375m or 15%). Given the fundamental nature of this news (not incorporeal like an analyst upgrade) I think the stock can run, perhaps to $55 before reversing.
However, and son-of-a-vondruke if this doesn’t suck, but it’s up 56% in a matter of weeks. It’s overbought (see red spike on chart). And if that wasn’t enough, your making a major bet on momentum follow through in a bear market that has a predilection for reversing, not following through.
I’ll sit this one out if it explodes higher tomorrow, but since it is only 2 points away from an easy stop, it is worth the risk if it pulls back tomorrow and remains above $48. Also, and this is just me, but since the market has been so choppy and $48 is such a laughably obvious support line, factor in risk to sell at 47.55 (an extra percent) or something like that.
| LDK LDK Solar provides preliminary outlook for FY09; sees revenue of $2.8-3.0 bln vs $2.43 bln consensus (45.82Â ) | |
| Co issues upside guidance for FY09 (Dec), sees FY09 (Dec) revs of $2.8-3.0 bln vs. $2.43 bln First Call consensus. Co also anticipates wafer shipments between 1.45 and 1.55 GW. ”We are pleased to achieve one of the fastest capacity ramps within the solar industry as we expand our production capabilities to meet the continued strong demand from our growing global customer base… We are proud to reach this significant milestone and remain confident in our ability to expand to 1.2 GW wafer capacity by the end of 2008. This achievement demonstrates our continued commitment to becoming the largest and lowest cost wafer producer in the solar industry.” LDK Solar’s 1.0 GW production capacity is in line with the company’s publicly announced plans to reach a target annualized wafer production capacity of up to 1.2 GW by the end of 2008, 2.2 GW by the end of 2009 and 3.2 GW by the end of 2010. |
LDK is for real.
August 25th, 2008 at 11:39:35 pmiBankCoin cast got LDK locked down…
http://www.ibankcoin.com/quote/quote.php?symbol=ldk&submit=Get+Quote
August 25th, 2008 at 11:42:09 pmoh yeah, we locked it down for our hopefully observant and diligent readers, but I missed it. crud.
that guidance is huge, stocks a buy, but, bear mkt, etc.
August 25th, 2008 at 11:49:20 pmIts a pretty good indicator… if you can find one stock that the majority of us quietly agree upon(no group think!), then I’d say the probability of our forecast is quite high.
and to pick a stock like LDK (strong fundamentals, technicals, and price performance) in a market like this! Lovely.
August 26th, 2008 at 12:20:56 amhttp://www.youtube.com/watch?v=qiSkyEyBczU
August 26th, 2008 at 9:14:14 am